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Asian markets hit by US 'fiscal cliff' fears

Published on Nov 8, 2012 7:00 PM
 
A man walks outside a securities firm in Tokyo on Thursday, Nov 8, 2012. Asian stock markets tumbled on Thursday after a ratings agency threatened to downgrade the United States if a solution to the so-called fiscal cliff isn't negotiated among lawmakers and newly re-elected President Barack Obama. Eyes are also on Beijing, where the Communist Party has kicked off its 18th congress, which will see the beginning of a once-in-a-decade leadership change. -- PHOTO: REUTERS

HONG KONG (AFP) - Fears the US economy is facing another huge economic crisis spurred a sell-off in Asian markets on Thursday as Barack Obama's re-election raised the spectre of another bitter stand-off in Washington.

Investors fear a deeply divided Congress will not be able to reach an agreement to avoid a so-called fiscal cliff at the end of the year that many say will send the United States back into recession.

Eyes are also on Beijing, where the Communist Party has kicked off its 18th congress, which will see the beginning of a once-in-a-decade leadership change.

Tokyo tumbled 1.51 per cent, or 135.74 points, to 8,837.15, Sydney fell 0.72 per cent, or 32.7 points, to close at 4,483.8 and Seoul lost 1.33 per cent, shedding 25.83 points to 1,911.09.

 
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